Australian Dollar Jumps As Hot Inflation Data Raises Rate Hike Odds

The Australian dollar moved higher against its major counterparts during the Asian session on Wednesday, as the nation's inflation accelerated more than forecast in the fourth quarter, intensifying expectations that the Reserve Bank of Australia will raise the cash rate by 25 basis points in February.

Data from the Australian Bureau of Statistics showed that consumer prices in Australia were up 7.8 percent on year in the fourth quarter of 2022 - exceeding estimates for 7.5 percent and accelerating from 7.3 percent in the three months prior.

On a seasonally adjusted quarterly basis, inflation climbed 1.9 percent - again beating forecasts for 1.6 percent and up from 1.8 percent in Q3.